Zanzibar tax hike rattles poultry import market
New excise duty expected to drive up prices, squeeze US exporters
2 July 2025
1 minute read
By: Zanzibar’s semi-autonomous government has tripled the excise duty on imported frozen chicken, a move that could reshape poultry trade in the region and place added pressure on US exporters, according to a new report from the USDA Foreign Agricultural Service..
The increase—from roughly $0.12 to $0.39 per kilogram—was passed on June 13 as part of a pre-election budget bill and is intended to raise $2.75 million in revenue while shielding local producers.
According to a new report from the USDA’s Foreign Agricultural Service, the policy is likely to tighten market access for US suppliers, elevate consumer prices, and destabilise supply chains in the island territory. US exports to Zanzibar reached $3 million between July 2024 and May 2025, up from $2 million the year prior. But the new tax could reverse those gains.
“Rising costs may also exacerbate logistical constraints, affecting freight efficiency, cold chain reliability, and distribution—especially for small and mid-sized exporters,” the report warned.
Zanzibar’s domestic poultry sector, however, faces serious limitations. The climate, input availability, and production infrastructure pose hurdles to scaling up local supply. Meanwhile, Tanzanian regulations, split between mainland and island authorities, continue to sow uncertainty for traders.
US poultry exports to Zanzibar dropped from 3,201 metric tons in 2020 to 1,725 metric tons in 2024, with administrative barriers and protectionist policies cited as key factors.
Despite efforts to favour domestic production, foreign exporters, especially Brazil and Turkey, have continued to dominate the market. Brazil, for instance, shipped more than 6,200 metric tons of frozen chicken to Zanzibar between July 2024 and May 2025.
The tax hike is expected to affect not only consumers but also the island’s tourism sector, where reliable protein supplies are vital. The USDA report cautioned that the policy could “amplify inflationary pressures” and strain food security in a market where affordability remains a top concern.
The excise increase comes amid broader political developments, including the dissolution of the Zanzibar House of Representatives on June 23. With elections looming, trade stakeholders are bracing for further shifts in market conditions.
